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    Lecture 4 5

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    abhisar 123
    1. Product and process design play an important role in adding value through efficient transformation processes while dealing with competitive pressures and customer expectations. 2. Major factors affecting process design decisions include production capacity, degree of vertical integration, production flexibility, automation level, and product quality. 3. There are different types of production systems such as product focused, process focused, and cellular manufacturing/group technology that have advantages and disadvantages depending on the situation.

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    Lecture 4 5

    Uploaded by

    abhisar 123
    11 views15 pages
    1. Product and process design play an important role in adding value through efficient transformation processes while dealing with competitive pressures and customer expectations. 2. Major factors affecting process design decisions include production capacity, degree of vertical integration, production flexibility, automation level, and product quality. 3. There are different types of production systems such as product focused, process focused, and cellular manufacturing/group technology that have advantages and disadvantages depending on the situation.

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    1. Product and process design play an important role in adding value through efficient transformation processes while dealing with competitive pressures and customer expectations. 2. Major factors affecting process design decisions include production capacity, degree of vertical integration, production flexibility, automation level, and product quality. 3. There are different types of production systems such as product focused, process focused, and cellular manufacturing/group technology that have advantages and disadvantages depending on the situation.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    11 views15 pages

    Lecture 4 5

    Uploaded by

    abhisar 123
    1. Product and process design play an important role in adding value through efficient transformation processes while dealing with competitive pressures and customer expectations. 2. Major factors affecting process design decisions include production capacity, degree of vertical integration, production flexibility, automation level, and product quality. 3. There are different types of production systems such as product focused, process focused, and cellular manufacturing/group technology that have advantages and disadvantages depending on the situation.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 15

    PRODUCT AND PROCESS DESIGN

    THE ROLE OF TRANSFORMATION PROCESS

    To add value
    1. Increase product value at each stage
    2. Value added is the net increase between output product value and
    input material value
    3. Provide an efficient transformation
    4. Efficiency – means performing activities well for least possible cost
    CHALLENGES
    Challenges

    Competitive Growing Customer Technological Environmental


    Pressure Expectations Advancements Issues

    Falling Prices Transformational


    Shrinking Delivery Quote Technologies
    Build to order requirements Radical Technology Shifts
    HOW DO MANUFACTURING COMPANIES DEAL WITH THEM
    In each case the competitive strategy is defined based on how the customer prioritizes

    Product Delivery Making large


    cost time variety of products, Improve ROI by
    on shorter lead Automating,
    times and shorter Mechanizing and
    runs without Introducing new
    affecting product technology
    Variety Quality quality
    DESIGNING & DEVELOPING PRODUCTS
    Establish the product Product/ Service Idea
    characteristics

    Economic & Technical Feasibility Study


    The characteristics of a
    product directly affect how
    the product can be Interaction
    produced Product/ Service Design Product/ Service Design

    How the product can be


    produced determines the
    Product & Market New Product / Service
    design of the production
    system
    MAJOR FACTORS AFFECTING PROCESS DESIGN DECISIONS
    Adequate capacity, possibility of expansion and contraction, product
    1. Nature of Product/ service demand
    price affects sales volume

    How much of the production a company should bring under its own
    2. Degree of vertical integration roof? Requires capital, hence low vertical integration for small
    businesses

    3. Production Flexibility Product flexibility, Volume flexibility

    Automation can reduce labor and related cost but initial investment
    4. Degree of Automation
    is capital intensive

    Even mass -produced goods are good in quality like Toyota…


    5. Product/ Service quality
    Automated machines can produce goods of superior quality
    PRODUCT – PROCESS VIEW
    Concept of Standardization vs customization
    TYPES OF PRODUCTION SYSTEM: VOLUME VARIETY
    TYPES OF PROCESS DESIGN
    Cellular
    Product Focused Process Focused Manufacturing/ GT

    • Production Departments • Production Departments • A subset of the broader


    are organized according are organized according group technology
    to the type of product/ to the type of processes concept.
    service produced.
    • Intermittent production/ • A coding system is
    • Production line/ job shop developed for the parts
    Continuous production made in a factory
    systems • Products follow highly
    irregular stop-and-go • Parts with similar
    • Discrete unit / Process and zig-zag, characteristics are
    manufacturing backtracking routes grouped into part
    families
    • Flow of material are • Low initial investment, use
    moved between general purpose • Changeovers are
    production operations equipment simplified with less
    variability
    TYPES OF PROCESS DESIGN Product Focused
    TYPES OF PROCESS DESIGN Process Focused
    TYPES OF
    PROCESS DESIGN

    Group Technology
    TYPES OF
    PROCESS DESIGN

    Cellular
    Manufacturing
    TYPES OF PROCESS DESIGN: DISADVANTAGES
    Cellular
    Product Focused Process Focused Manufacturing/ GT

    • Higher initial investment • Employee specialization • Larger waiting time


    and training requirements
    • High volume, low cost • Not all parts can be
    product made in this manner so
    very often requires other
    process integration

    • Standardization and
    moderate batch size

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